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UNITING THE WORLD OF FITNESS
Health Club Management

Health Club Management

features

Editor's letter: Mega players

Having a portfolio of more than 1,000 health club locations is the aim of ambitious operators, with this elite category growing fast, creating new dynamics in the market

Published in Health Club Management 2022 issue 4
Anytime Fitness has around 4,000 locations globally / photo: Anytime Fitness
Anytime Fitness has around 4,000 locations globally / photo: Anytime Fitness
At this scale, brands become their own ‘vortex’, able to sell an increasingly broad range of services to members

As the industry grows and more operators achieve global ‘mega player’ status – deemed to be in excess of 1,000 locations – the saturation of the market is increasing and we’re entering a new phase of accelerating aggregation and churn.

At the moment, the biggest players include companies such as Planet Fitness with 2,291 locations, Basic-Fit with 1,097, RSG with 1,000, Xponential with 2,100, Anytime Fitness with more than 5,000, Snap Fitness with 2,000 and F45 with 1,750.

At this kind of scale, brands become their own ‘vortex’, able to sell an increasingly broad range of services to customers and offering cross-portfolio access, such as that afforded by Xponential’s recently-launched X-Pass.

This ‘all locations’ offering is for customers who want to use locations from across the company’s entire estate – which currently has 10 brands covering everything from rowing, yoga, lifting, running and cycling to barre, stretching, boxing and Pilates.

By operating across so many wellness sectors, Xponential is able to keep its members within its own universe for most if not all of their fitness needs, through the X-Pass programme.

In addition to enabling brands to effectively aggregate their own estates – instead of using an external service, such as Classpass – this kind of scale also enables them to create operating clusters to drive economies of scale and improve market visibility, staff training and career opportunities.

As mega players emerge there’s also an accelerating churn in relation to real estate, as market forces determine which brands thrive best in which locations. A steady stream of sites is now changing hands as operators work to optimise locations.

We’re seeing deals whereby one brand is taking over locations previously run by another and they’re thriving under new ownership where they’d previously failed.

In our interview on page 34, industry veteran, Dave Courteen addresses this issue, saying: “Operators must be very clear in their messaging, so people find their way to a club they’re likely to stick with – be clear in who you’re targeting – try not to be all things to all people. Provided we’re clear in our messaging, I believe we can be successful at keeping people engaged with our clubs.”

The final piece of this jigsaw puzzle is input from entrepreneurs who are building businesses to sell to mega player brands. We’re seeing start-ups aligning new health clubs with the systems and processes that will enable them to achieve a profitable exit by selling out to a specific operator as investment continues to flow into the sector.

Liz Terry, HCM editor
[email protected]
@elizterry
https://www.leisureopportunities.co.uk/images/2022/588080_791660.jpg
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features

Editor's letter: Mega players

Having a portfolio of more than 1,000 health club locations is the aim of ambitious operators, with this elite category growing fast, creating new dynamics in the market

Published in Health Club Management 2022 issue 4
Anytime Fitness has around 4,000 locations globally / photo: Anytime Fitness
Anytime Fitness has around 4,000 locations globally / photo: Anytime Fitness
At this scale, brands become their own ‘vortex’, able to sell an increasingly broad range of services to members

As the industry grows and more operators achieve global ‘mega player’ status – deemed to be in excess of 1,000 locations – the saturation of the market is increasing and we’re entering a new phase of accelerating aggregation and churn.

At the moment, the biggest players include companies such as Planet Fitness with 2,291 locations, Basic-Fit with 1,097, RSG with 1,000, Xponential with 2,100, Anytime Fitness with more than 5,000, Snap Fitness with 2,000 and F45 with 1,750.

At this kind of scale, brands become their own ‘vortex’, able to sell an increasingly broad range of services to customers and offering cross-portfolio access, such as that afforded by Xponential’s recently-launched X-Pass.

This ‘all locations’ offering is for customers who want to use locations from across the company’s entire estate – which currently has 10 brands covering everything from rowing, yoga, lifting, running and cycling to barre, stretching, boxing and Pilates.

By operating across so many wellness sectors, Xponential is able to keep its members within its own universe for most if not all of their fitness needs, through the X-Pass programme.

In addition to enabling brands to effectively aggregate their own estates – instead of using an external service, such as Classpass – this kind of scale also enables them to create operating clusters to drive economies of scale and improve market visibility, staff training and career opportunities.

As mega players emerge there’s also an accelerating churn in relation to real estate, as market forces determine which brands thrive best in which locations. A steady stream of sites is now changing hands as operators work to optimise locations.

We’re seeing deals whereby one brand is taking over locations previously run by another and they’re thriving under new ownership where they’d previously failed.

In our interview on page 34, industry veteran, Dave Courteen addresses this issue, saying: “Operators must be very clear in their messaging, so people find their way to a club they’re likely to stick with – be clear in who you’re targeting – try not to be all things to all people. Provided we’re clear in our messaging, I believe we can be successful at keeping people engaged with our clubs.”

The final piece of this jigsaw puzzle is input from entrepreneurs who are building businesses to sell to mega player brands. We’re seeing start-ups aligning new health clubs with the systems and processes that will enable them to achieve a profitable exit by selling out to a specific operator as investment continues to flow into the sector.

Liz Terry, HCM editor
[email protected]
@elizterry
https://www.leisureopportunities.co.uk/images/2022/588080_791660.jpg
Can one operator succeed where another has failed? asks Liz Terry
Latest News
More than one in five (27 per cent) Americans belonged to a health club or ...
Latest News
Ultimate Performance (UP) – the private gym chain and PT business – has opened a ...
Latest News
Luxury hotel chain Mandarin Oriental has launched a new brand called Intelligent Movement to deliver ...
Latest News
Boutique fitness chain 1Rebel opens the doors to its tenth club today (Monday 27 June ...
Latest News
A new report by Deloitte, outlining the social and economic value of the global health ...
Latest News
Barry’s has entered the world of retail, opening a studio in the new Flannels flagship ...
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The London 2012 Olympic legacy investment designed to improve physical education at primary schools has ...
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A special task force has been established to boost physical activity opportunities for people with ...
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Featured supplier news: How wearables-driven gamification will boost your business
It’s a known fact that gamification is an effective method to make everyday activities and work more fun.
Featured supplier news
Featured supplier news: Fitness industry to gather at Sibec Europe-UK in Portugal this September
Questex’s iconic event Sibec Europe-UK – known as Europe’s leading hosted buyer event for the fitness industry – will take place from 27-30 September at the Anantara Vilamoura Algarve Resort, in Portugal.
Featured operator news
Featured operator news: Everyone Active to launch new exercise classes to reduce gender gap
As part of their work to break down the barriers that deter women and girls from participating in sport and physical activity, Everyone Active has teamed up with EMD UK to launch new exercise classes linked to the This Girl Can campaign.
Featured operator news
Featured operator news: New £42m Moorways Sports Village to open on 21 May
Everyone Active will open Moorways Sports Village to the public on Saturday 21 May with a grand opening weekend – in time for the half term holidays.
Video Gallery
Sport Alliance GmbH
Total Vibration Solutions / Floors 4 Gyms / TVS Sports Surfaces
Mindbody, Inc
Company profiles
Company profile: Safe Space Lockers
We provide a full turn-key solution for clients from design and consultation, through to bespoke ...
Company profiles
Company profile: ukactive
ukactive is the UK’s leading not-for-profit membership body for the physical activity sector, bringing together ...
Catalogue Gallery
Click on a catalogue to view it online
Directory
On demand
Fitness On Demand: On demand
Wearable technology solutions
MyZone: Wearable technology solutions
Architects/designers
Zynk Design Consultants: Architects/designers
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
Fitness equipment
A Panatta Sport Srl: Fitness equipment
Salt therapy products
Himalayan Source: Salt therapy products
Whole body cryotherapy
Art of Cryo: Whole body cryotherapy
Skincare
Comfort Zone - Davines S.p.A: Skincare
Management software
Premier Software Solutions: Management software
trade associations
International SPA Association - iSPA: trade associations
Property & Tenders
Pendine Sands, Carmarthenshire
Carmarthenshire County Council
Property & Tenders
Runcorn
Halton Borough Council
Property & Tenders
Diary dates
30-30 Jun 2022
The ICC, Birmingham, Birmingham , United Kingdom
Diary dates
12-13 Sep 2022
Wyndham Lake Buena Vista Disney Springs® Resort, Lake Buena Vista, United States
Diary dates
25-28 Oct 2022
Messe Stuttgart, Germany
Diary dates
25-28 Oct 2022
Ibiza, Ibiza, Spain
Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
Diary dates
17-18 Mar 2023
Tobacco Dock, London, United Kingdom
Diary dates
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